Senior Citizens League, a nonpartisan advocacy group, is predicting a modest 3.1% rise in Social Security’s 2024 cost of living adjustment (COLA), even as officials warn beneficiaries are losing their purchasing power because of inflation.
“Inflation is moderating, but a lower inflation rate has not necessarily meant that prices have decreased,” SCL officials said in a study published earlier this year, in which the group argued that “key items” remain at “stubbornly high” prices — citing prescription drugs, food, housing or dental services.
The 2023 increase, at 8.7%, was the largest COLA increase in over four decades, partially thanks to supply-chain disruptions that fueled soaring inflation amid the pandemic.
Estimations of upcoming COLA increases are compiled using data from the Bureau of Labor Statistics and specifically its Consumer Price Indexes — the same data ultimately used by the Social Security Administration to determine its annual COLA increases.